Court orders arrests in WB bankruptcy case [Archives:2006/923/Local News]
SANA'A, Feb. 19 ) The Specialized National Security Court (SNSC) under judge Najeeb Al-Qadri issued an order to arrest suspect Naji Abdullah Al-Ghader, a member of Watani Bank's management board.
The SNSC also ordered the capture of Abdullah Al-Khaolani, who is abroad, by the International Criminal Police Organization (Interpol). The two suspects are accused of being behind the bankruptcy of Watani Bank for Trade and Investment (WBTI).
The suspects requested the SNSC release them on bail; however, only WBTI management board members Abdu Al-Mahyoub and Hizam Al-Ruba'a were released. The SNSC postponed its response to the other suspects' request until its next scheduled session March 6. The court also ordered concerned parties to give WBTI General Manager Shabih Nakwi of Pakistan half of his salary.
During its session, the court listened to Hafiz Fadhel, Central Bank of Yemen (CBY) civil and personal rights prosecutor, who spoke on behalf of the committee taking control of WBTI's assets. He claimed the WBTI management board wasted depositor and shareholder funds.
Fadhel said the WBTI board gave illegal facilities to influential personalities without taking any estate or financial guarantees. Additionally, the board received loans from the bank equivalent to 100 percent of the bank's budget, which is illegal.
The CBY prosecutor requested SNSC issue a tough verdict compelling WBTI to pay all debts and rights of its customers, depositors and shareholders. He added that suspects should pay the expenses of the committee taking control of WBTI.
Following this, Fadhel presented evidence convicting members of WBTI's management board. Their debts were illegal because the law states that bank employees' debts must not exceed .5 percent, equivalent to a year's salary for any bank employee.
The CBY prosecutor said WBTI chairman of the board of directors, Dr. Ahmed Al-Hamdani, embezzled YR 255 million and granted loans to his relatives without any guarantee. He pointed out that Al-Hamdani also made illegal loans to influential figures, for example, granting a large loan to Al-Ghader, an owner of Al-Barakh group. Additionally, Al-Hamdani made loans totaling YR 6 billion to contractors and YR 600 million to traders.
Fadhel noted that the CBY sent a warning letter to the WBTI management board about the WBTI's poor status. Al-Hamdani confessed to most charges during the session, but said his debts total YR 155 million, denying the sum of YR 255 million according to the investigation. He assured the court that he will repay all his debts, adding that he is not responsible for a person whose surname is Al-Hamdani contained in the list of debtors. He claimed the reason for WBTI's collapse firstly, was that the CBY evoked [DP-this is the wrong word, but I don't know what is meant instead-maybe provoked?] WBTI's depositors who wanted to withdraw their money. Secondly, some contractors could not repay their bank debts because the government delayed paying for projects they carried out.
The SNSC accused the WBTI management board of treasury [DP-this is not a crime-is something else meant?] and embezzlement in the first trial session Jan. 22. The court's next session will be in March.
WBTI was established in 1998 with YR 500 million in capital and a budget of more than YR 19.7 billion.
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